Franzia

Pacific State Bank (Bank) intervened in an action between Dell Merk, Inc., a corporation to which it had provided commercial financing, and the Donald C. Franzia 1992 Revocable Trust, Donald C. Franzia, trustee (Franzia). The underlying litigation between Dell Merk and Franzia involved a construction contract dispute. As a secured party, Bank sought payment from Franzia of amounts previously paid by Franzia to Dell Merk as well as monies allegedly still owed and payable by Franzia to Dell Merk. The trial court granted Franzia’s motions in limine to exclude all evidence on Bank’s two causes of action and entered judgment against Bank. The trial court later granted Franzia attorney fees and costs and entered an amended judgment against Bank including an award of $212,726 in fees and costs.

Bank appeals the judgment and amended judgment entered against it contending the trial court erred in granting Franzia’s motion in limine to exclude all evidence on its first cause of action and in ordering Bank to pay attorney fees. Bank claims: 1) Franzia breached its obligation to pay by not making the first progress payment jointly payable to Bank and Dell Merk; 2) because Dell Merk…